ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -As far as mutual funds are concerned, SEBI formulates policies, regulates and supervises mutual funds to protect the interest of the investors.

Detailed explanation-2: -AMFI, the association of all the Asset Management Companies of SEBI registered mutual funds in India, was incorporated on August 22, 1995, as a non-profit organisation.

Detailed explanation-3: -The SEBI MF Regulation of 1996 lays down the guidelines for the regulation of mutual funds in India. Under these guidelines, the asset management companies are treated as Public Trust, which comes under the Indian Trust Act of 1982.

Detailed explanation-4: -The Securities and Exchange Board of India (SEBI) is a regulatory body that protects the interests of those who invest in the securities market. It also regulates the functioning of the stock markets and mutual funds in the country.

Detailed explanation-5: -The AMFI acts as the regulator for all the participants in the mutual fund industry. It takes directions from SEBI and ensures smooth implementation of the rules and regulations maintaining a balance between the progress in the industry as well as safeguarding each participant’s interests.